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Automotive Industries interview with Jack Reinelt, CEO of GoIndustry DoveBid

The past two years have been particularly painful for automotive manufacturers. Many have been faced with cuts in production that have seen companies slashing workforces, machinery, and other assets. This is where GoIndustry DoveBid comes in. GoIndustry DoveBid is a leading player in the valuation and sale of surplus industrial assets.

This market is estimated to be worth more than USD 100 billion globally and the UK-listed company GoIndustry DoveBid has a presence in most locations across the world.

Earlier this year, the company was appointed by GoodYear Dunlop Australia to dispose of its Somerton tyre manufacturing facility in Melbourne, Australia. According to GoIndustry DoveBid, it won this contract after it had successfully disposed of assets of other tyre manufacturers – such as Continental Tyres.

“GoIndustry DoveBid approaches the market with three distinct advantages. First, we have a unique significant global reach so we are able to provide the full range of asset management services wherever they are needed. Second, most of our business is online, making it more efficient and convenient for both buyers and sellers whether it’s for a single piece of equipment or a whole production line. Third, our knowledge of the market across multiple industry sectors is unsurpassed. Since 2000, we have collected information gathered from auctions all over the world, numbering over 1500 in 2008 alone. We leverage this rich data on a daily basis through accurate valuations and appraisals for the benefit of all our customers,” says the company.

GoIndustry was founded in 1999 when it entered the online auction space. The company through acquisition has in-house knowledge and expertise dating back to the 19th Century. The company has an acknowledged expertise in equipment valuation, marketing and database management that gave it the necessary clout in the market.

The company was one of the few to survive the dotcom bust. Last year, GoIndustry acquired DoveBid, which helped the company become a leader in the North American market. “ The management of the company believes that there is considerable scope for future growth. Even as the market leader, GoIndustry DoveBid’s market share accounts for less than 1 per cent of the estimated global market. Because the market is so fragmented, GoIndustry DoveBid believes it can increase its sales significantly over the coming years,” says the company.

The company’s customers come from a range of backgrounds from multinational manufacturing corporations to Asset Based Lenders and financial institutions who rely on accurate valuation services.

Bankruptcy and Insolvency Practitioners also use GoIndustry DoveBid’s services as do dealers and small to medium enterprises. GoIndustry DoveBid customizes solutions according to each customers’ requirements. The company prides itself in helping customers make substantial savings in capital expenditure through its AssetZone web-based redeployment tool. Similarly, it offers a wide variety of programs to help maximize the resale value of equipment. “We offer dedicated online events for our corporate clients, to take advantage of their own built-in brand recognition. Our operations team will travel to the plant location, digitally photograph and professionally describe every item in a facility, and post this information to a dedicated micro site on Our dedicated global marketing team will create a high impact campaign to showcase the assets to a worldwide audience, as well as our in-house database of 1.3 million profiled buyers” says the company.

In May this year, GoIndustry DoveBid appointed a new chief executive officer, Jack Reinelt. Reinelt, who has 25 years experience providing technical solutions to the automotive industry, was previously Managing Director and COO, EMEA at TeleAtlas, a global leader in providing digital map data to the automotive, Internet, and consumer electronics markets. Prior to this, he was VP of e-Marketplace Management at Commerce One, and was President of Software Services Corporation for most of the 1990’s. He began his career in sales at IBM. Reinelt is also a board member of GDI Infotech, a private IT consultancy based in Michigan, USA

Automotive Industries spoke to Jack Reinelt, CEO of GoIndustry DoveBid.

AI: How many of your customers come from the automotive industry?

JR: We have conducted more sales and asset valuations worldwide than any other similar service provider and the automotive sector is very important for us. The volume fluctuates a bit from year to year depending on business cycles, but our clients include many of the OEM’s and the Tier 1 and Tier 2 suppliers. It’s safe to say we have covered nearly every aspect of automotive design and manufacture, and worked with most every type of automotive supplier. This wealth of experience has created a truly unique set of core competencies as well as developing a very talented and knowledgeable team with deep expertise in the auto industry. This is the foundation for meeting and exceeding our client’s expectations in the recovery of value within the assets they wish to sell.

Our extensive reach in both the supply and demand side of various types of used equipment continues to attract a very diverse global customer base. Within the auto industry, we have had the privilege of working with clients such as General Motors Europe, Ford, Toyota, Mitsubishi, Rover, Delphi, Dana Corporation, GDX Automotive, TI Automotive, Visteon, Linpac Automotive, Bosch, Continental, Nissan-Renault, Oxford Automotive, Johnson Controls and Eagle Ottawa.

In the past year alone, we provided services for approximately 1,200 auto related companies, engaging over 1,700 buyers (end users & dealers) and generating over $14million in revenue for our clients. The majority of our buyers come from the United States but we are seeing larger asset types being sold in Canada, Finland, Taiwan, Egypt, Mexico and the United Kingdom. These countries alone make up roughly 33% of our sales within the auto industry. So we do see tremendous opportunity for growth in this sector as the global economy starts to recover and manufacturers shift their business models to accommodate for the geographic changes in global demand for passenger cars, commercial vehicles and related components such as tires.

AI: What are the benefits to buyers and sellers in the automotive industry?

JR: As the global economy starts to recover, their will be some positive trickle down for the auto industry in terms of sales, but there will continue to be geographic shifts in both demand and production. Asia-Pacific is expected to be a major source of components and the region where most companies are considering relocating their plants.

This will mean more opportunities to sell used equipment as sellers close or refit existing plants or create new manufacturing facilities, and buyers will be interested in acquiring these types of manufacturing assets.

From a seller’s perspective, our clients utilize our services because we help them to better understand the remaining value within their assets via our certified appraisal services. We even have software tools that help them re-deploy assets internally, saving them the capital of buying new equipment. Most importantly, if our client decides to sell assets, we are able to provide the best alternatives for them to engage a global pool of buyers which can ultimately bring them the best financial return on their assets. We also provide a host of other services that wrap around this process, to make it easy for the customer.

Our buyers, who are end users and dealers all over the world, have come to respect our unparalleled ability to offer a trusted service where they can locate a wide variety of assets, which are much more cost-effective than buying ‘new’. We have gained considerable intelligence in marketing and advertising over many years, and this asset intelligence enables us to get the best prices for our sellers, and also provide good deals for buyers around the world. It’s a win-win for all.

AI: What are some of the solutions your company offers to manage surplus or idle assets of the automotive industry globally?

JR: We offer our clients a multitude of services in order to provide convenience and efficiencies that are unmatched within the marketplace. Our global reach, organizational structure and extensive market knowledge particularly within the automotive industry saves our clients a lot of time and effort in redeeming financial value in surplus or idle assets.

Over the past two decades we’ve helped many global organizations within the automotive industry deal with their surplus assets. Having 40 offices in 22 countries puts us in a unique position to develop regional markets as well as leverage our global marketplaces for the idle assets that still may have significant useful life.
Our certified and highly experienced asset appraisers usually begin the process utilizing a ‘tool bag’ of quantitative and statistical methods as well as data of past performance of similar equipment found in our in-house database to understand the real value of those surplus/idle assets.

This information is then used by our marketing and operations departments to determine that best manner in which to recoup the client’s remaining financial value within that asset. The options we offer to our clients are online auctions, live auctions with online webcasts, and negotiated sales.

One type of online auction we offer is commonly referred to as an Exchange. Exchanges are regularly scheduled auctions within a specific vertical, such as Metalworking & Machinery. The value of the exchanges is that there is brand recognition within the specific marketplaces exposing the asset to a large number of end-users and dealers that frequently check on the variety of available assets for a specific or series of exchange sales. Another important feature is that many companies may choose to consign their assets to a specific auction creating a larger pool of assets, which becomes very attractive to potential buyers.

The verticals our exchanges cover align well with all the different types of equipment necessary for the manufacturing of an automobile and include Manufacturing & Machinery, Electronics Manufacturing, Information Technology and Transportation.
A typical exchange may have 3000 regular online visitors and may have hundreds of buyers depending on the number of assets available within the specific exchange.
So in the case of automotive manufacturing an idle or surplus asset such as a CNC Machining Center or Stamping Press would be auctioned off in our Manufacturing & Machinery Exchange. Historically, we have had much success in finding buyers for this type of equipment particularly in the Asia-Pacific region.

Another solution we offer our clients is the ability to have their own stand-alone auction. This type of auction is very attractive when shuttering an entire manufacturing plant for instance. In this type of solution, we typically have either a dedicated online auction or we will manage a live auction onsite at their facility and have an accompanying webcast allowing for online bidding. Leading up to the actual auction date, our operations department works on preparing the assets for sale by tagging, photographing and cataloging each piece of equipment and moving small and similar items together to facilitate a organized sales experience for the potential buyer. Meanwhile, our marketing department will mine our extensive internal database of buyers and prospects who have demonstrated previous interest in the specific assets that are available for bidding. This list along with those they have found through various trade associations, media publications and other list sources will become the focus of all marketing and advertising efforts with the primary goal of getting most number of registered bidders for the specific auction. 

The Negotiated Sale or Private Treaty is another solution. Clients gravitate towards this type of sale if they have a very unique type of asset with a limited market.
Once the sale has completed, we also offer approved riggers who have all been vetted for proper insurance, experience and meet our standards of service. The role of logistics for rigging, shipping and exportation is coordinated by us to make the purchase process as easy as possible for the buyer.

So I am very happy to say that we are essentially a one-stop-shop. We have the infrastructure, market knowledge and global penetration to offer very attractive solutions to automotive manufacturers who are looking to redeem financial value in idle or surplus assets.

AI: How critical have your services been to the automotive industry in North America in the current crisis?

JR: Our ability to sell surplus assets to raise cash and redeploy assets to save on CAPEX has been critical especially within the North American automotive sector. The primary issue for all types of companies during the current crisis is accessibility to capital and credit. As demand for the automobile has decreased in the consumer market, a reduction in production capacity has been unavoidable leaving various equipment and production related assets idle. We have had numerous clients during the past few years that have multiple automotive manufacturing facilities and because of the decrease in demand, they have had to figure out ways to reduce costs. In one instance, a client had 5 plants and chose to shutter one entire plant and sell selected assets in the remaining facilities. We were able to move quickly, providing valuations on all the equipment, coordinate the auction, move the equipment out to the buyers and deliver payment. The client was very happy with the results and has continued to use us in liquidating some equipment as they refit. 

Our full service approach allows companies to access capital from sources internal to that company. We unlock the value of those idle assets allowing our clients’ access to much needed capital.

Our services have been a critical tool for helping some automotive companies during the turmoil of the last few years. Many companies now realize that it make very good financial sense to implement programs to more effectively manage their return on industrial assets on an ongoing basis, not just when there is a crisis. We are now helping them implement these programs on a global basis.

AI: What kind of services do you think would be required from your company in the future by the automotive industry?

JR: As we begin our strategy for 2010-2012 our focus will be on Maximizing Value for Clients and driving greater value for our buyers. The automotive industry is a global business and our clients are looking for a complete solution to help them get the most value from their industrial assets. And they expect to have a consistent program to accomplish this worldwide. We are fortunate that in our market we have a stronger global reach than any of our competitors. Our advantage within this area has its foundation in our highly trained staff around the world, and in our deep knowledge and experience conducting auctions and valuations. These strengths enable us to create global information-enabled solutions that help us deliver tangible results for our clients.

One example is an asset lifecycle management solution that we have developed which is available over the web as a ‘software as a service’ (SaaS). This application helps companies proactively manage, track and redeploy idle assets across their various divisions and plant locations anywhere in the world.

Branded as AssetZone, this intelligent solution reduces complexity and drives efficiencies for our clients. This solution provides company wide visibility into unproductive assets allowing for consistent administration and transfer of surplus asset redeployment.

The value of the AssetZone system has many layers; it reduces cost & time of acquiring new assets if similar assets are available within the organization; it provides complete financial analysis of redeployment complying with governance such as Sarbanes Oxley or Basel II; it is a completely secured and hosted system that is fully customizable in terms of look, capture fields & reporting capabilities; it also is solely managed by us so there is no need to involve internal IT departments and finally the application accommodates multiple languages including English, German, Dutch, Spanish & French.

One of the more salient features of AssetZone is that it integrates seamlessly into one of our disposition channels such as Exchanges. This capability allows clients to set specific time parameters for assets to sit idle within a company and if that asset exceeds predetermined time duration, the asset will automatically move into an auction scenario allowing the company to recover the monetary value of the idle asset.

We have several clients within the automotive sector, and many global customers, who are realizing significant cost savings, improved return on investment and improved planning capabilities through the utilization of AssetZone as an asset lifecycle management solution.

As the global economy recovers, I believe this type of SaaS application will be critical in helping companies better manage their capital.

Looking towards the future, I firmly believe that a full understanding of asset utilization both in a production environment and non-production environment is a key to improved profitability. Our core competency of driving CAPEX down and turning surplus assets into cash for our clients is at the heart of our corporate solutions.

Within the automotive industry, we have heard common themes such as the need for a structured sales process for surplus and idle assets that is easy to implement., with Other clients have mentioned the need for transparency as assets are sold or redeployed globally, and yet others resonate the need for expert asset intelligence, appraisal services and market knowledge.

At GoIndustry DoveBid we have built a process that is comprehensive and proactive, to help clients optimize their asset values. Utilizing our unsurpassed experience and technology we offer a truly global, one-stop solution for complete asset management of industrial assets.

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